Key roles can help the board and executive leader support each other
What is the ideal relationship between a nonprofit's board of directors or trustees and the executive director or chief executive?
Generally, the board envisions the future of the organization and the executive director or chief executive makes that vision a reality. You might also think of it by function. The board provides oversight and the executive leader handles implementation. But what does that mean in practice?
Consider the general guidelines below—and the importance of a good relationship between both parties.
Key roles
The board and the executive director or chief executive work together to determine how the organization can best achieve its mission.
Here are specific examples of expectations in four key areas: mission, money, programs and people.
Mission
| Board of directors or trustees | Executive director or chief executive |
| Approve mission, vision, values, strategic plan | Work with board to develop mission, vision, values, strategic plan |
| Review and approve annual implementation plan to ensure consistency with strategic plan | Develop annual implementation plan and advise board when milestones in implementation are reached |
| Ensure legal and ethical integrity | |
| Maintain accountability, including complying with reporting and accounting requirements | |
| Be aware of key risks and mitigation strategies |
Money
| Board of directors or trustees | Executive director or chief executive |
| Approve annual budget | Develop annual budget, establish income and expense parameters, determine specific expenditures within approved budget lines |
| Approve internal control policies | Work with board to develop financial policies and internal controls |
| Hire financial auditor | Respond to auditor findings |
| Review financial indicators and ensure adjustments are made | Report to board on cash flow, budget to actual, and other key financial measures |
| Approve investment policies and ensure compliance with regulatory requirements | Comply with board-approved financial policies and reporting requirements |
| Support fundraising activities | Work with board to develop and execute fundraising strategy |
Programs
| Board of directors or trustees | Executive director or chief executive |
| Ensure that programs are achieving objectives | Develop and implement programs |
| Provide evidence of program effectiveness |
People
| Board of directors or trustees | Executive director or chief executive |
| Hire and evaluate the executive director | Hire and supervise all other staff |
| Approve personnel policies and review salary information | Set compensation and benefits for individual employees within organizational policies |
| Draft grievance and whistleblower policies |
Why the leadership relationship matters
An effective leadership team offers various benefits to an organization, such as energy, productivity, links to numerous networks, access to information and improved decision-making.
How the board and the executive director or chief executive interact sets the tone for the entire organization. Modeling a collaborative style that respects different points of view is critical. A strong relationship, of course, is about more than respecting boundaries and sharing information. It involves developing trust.
The board who trusts the executive leader will feel less need to assert authority over him or her. Similarly, the executive leader who trusts the board won't feel the need to keep the board in the dark or at arm's length.
How to support each other
A savvy executive leader takes the time to get to know board members personally when they first join the organization, either by phone or, even better, in person. This is an opportunity to ask questions and uncover expectations. The first conversation should be a candid discussion about expectations, leadership styles and communication preferences.
Whether you're a board member or the executive leader, you might ask these questions at that first meeting:
- What can I do to support you?
- What will you value most from me?
- What are you most afraid of not getting from me?
Then, consider other practical ways to foster an effective relationship:
| Board of directors or trustees | Executive director or chief executive |
| Understand the extent of board governance responsibilities | Clarify expectations of board members, such as financial support, meeting attendance and volunteer expectations |
| Trust the executive director or chief executive to run the organization | Tell the board what they need to know — and then tell them again, if necessary |
| Facilitate regular performance evaluations of the executive director or chief executive, including meaningful input from board members and key staff and volunteers | Assign specific action items to individual board members |
References
CompassPoint: 10 great board chair practices by Marla Cornelius (2016)
Cullinane Law Group: Who's in charge here? Role of the board of directors vs. role of the executive director by Mollie Cullinane (2014)
Governance Matters: Executive director conflict
The Management Center: Executive director performance evaluations
GOV.UK: The essential trustee: What you need to know, what you need to do (2015)
Knowhow Nonprofit: Board responsibilities
Knowhow Nonprofit: The chief executive's relationship with trustees
Nonprofit Risk Management Center: Let's work together: The sweet sounds of a board-CEO partnership by Melanie Lockwood Herman and Erin Gloeckner
Journal for Nonprofit Management: The board chair-executive director relationship: Dynamics that create value for nonprofit organizations by Mary Highland (2008)
Dalhousie University: Managing conflict: A guide for volunteer boards by E. Grant MacDonald
Nonprofit Quarterly: Effective board chair-executive director relationships: Not about roles! by Stephanie Myrie (2006)
The Nonprofit Center: Dynamic duo by Laura Otten (2012)
The Bridgespan Group: Starting off on the right foot: How to establish a good ED-board relationship
IDEA: An organization's board of directors by Elisa Warner
Dot Org Solutions: 10 ways to improve the board, staff relationship in a small nonprofit by Amy Wong
